If you own your own home and are at least 62 years of age, FirstBank, a reverse mortgage lender in Memphis, could provide you an opportunity to convert some of your home’s equity into cash. If you live in your home, a HECM reverse mortgage allows you to borrow against the equity in your home, without having to ever having to make any mortgage payments, as long as you are living in the property. Chris Brundige, with FirstBank Reverse Mortgage, says that if you are looking to better fund your retirement,concerned that you may outlive your money, or looking to eliminate the payments of an existing mortgage, a HECM reverse mortgage is an option worth discussing with your investment advisor.
How Does a HECM Work?
FirstBank’s Reverse Mortgage provides access to some of your homes equity, either through a line of credit or regular monthly payments sent to you based on of your loan. The amount that you qualify for is based on your age and the value of your property, not your credit score. The loan is not due back until the last borrower dies, sells the home, or no longer permanently occupies the home.There is mortgage insurance which is part of the closing cost of the loan, that guarantees that you nor your heirs can ever owe more than the home is worth, should the house decrease in value.
FirstBank Reverse Mortgages area federally-insured, home equity conversion mortgage (HECM). These mortgages are governed by the U.S. Department of Housing and Urban Development and are the only reverse mortgages insured by the Federal Housing Administration.
There are different ways a borrower can receive money through a reverse mortgage;in a line of credit, as a monthly payment, or in a small lump sum. The amount you can borrow depends on your total equity, your age, the value of the property, and current interest rates”, Chris Brundige said.The Reverse Mortgage line of credit offers a different feature than standard lines of credit. The amount of money available on your reverse mortgage line of credit grows over time adding to your purchasing power.
Since the baby boomers have started retiring, we have seen an increase in reverse mortgages. Chris Brundige said, “some of the reasons for the increase, is because baby boomers are learning more about how the program can help them in ways such as; using the funds to delay receiving social security benefits, using a line of credit to offset taking retirement funds from their accounts that are still growing, or eliminating monthly payments on an existing mortgage and using home equity to pay off bills”. Chris went on to say, he often shows his clients how adding home equity to their retirement strategy, can help increase the success of any retirement plan.
FirstBank requires all borrowers to attend Reverse Mortgage counseling prior to acquiring a HECM. If you are interested in the program and would like to learn more about how FirstBank’s Reverse Mortgage could help extend the life of your retirement plan and put your largest asset to work for you, Chris Brundige, a licensed Reverse Mortgage lender in Memphis, would be glad to help you. Please call Chris Brundige at 901-472-1301 to learn more about your options or visit http://reversemortgagelenderintn.com for more information.
*Homeowner is still responsible for paying property taxes, insurance, and property maintenance.